Thanks to the recovery of the industry and the innovation of the enterprise itself, Tingyi (Cayman Islands) Holding Corp., a Chinese instant noodle giant, has registered a stable performance with good momentum for growth.
The 2018 semiannual report it released on August 27 of 2018 shows that in the first half of this year, the turnover registered 30.996 billion yuan, up 8.5 percent year on year; net profit reached 1.488 billion yuan, up 86.59 percent year on year. In the first half of 2018, the profits attributable to shareholders increased by 86.59 percent year on year to 1.306 billion yuan.
Notably, in the first half of this year, the instant food maker's high-end natural mineral water "Hanyangquan" joined hands with the Palace Museum Art Exhibition, opening up a new way of cultural innovation.
--- Registering good performance in instant noodles and beverage
According to the financial report, in the first half of 2018, the company insisted on securing the mass market by virtue of its core products, ensured stable cash inflow and witnessed steady growth. On the premise of maintaining the steady development of the instant noodle industry, the beverage industry embarked on product structure adjustment and implemented price adjustment strategy for some products.
In the first half of 2018, the revenue in instant noodle sector represented 11.134 billion yuan, with a year-on-year growth of 8.4 percent, accounting for 35.92 percent of the company's total revenue. During the reporting period, the company continued to optimize its product mix, upgrade its products, adjust the price in the early stage and increase its sales volume, leading to an increase of 2.31 percentage points to 29.83 percent in the gross profit margin of instant noodles.
The company said that it would continue to push forward the multi-price product strategy, consolidate the high-price products and develop the high-end products to adapt to consumption upgrade and meet the health needs of consumers, as well as satisfy different consumption scenarios through multi-specification products.
The company's remarkable performance was also attributed to the continuous recovery of China's instant noodle market. According to Nielsen, the overall sales volume of instant noodles market increased by 5.9 percent year on year and the sales value increased by 10.1 percent year on year. In the first half of 2018, the sales volume of the company accounted for 43.7 percent of the total market share, maintaining the first in the market.
In terms of beverage, the revenue in the first half of the year totaled 19.14 billion yuan, up 9.19 percent year on year. The company revealed that it has developed multiple channels, improved cooperation with distributors at different levels, strengthened inventory management of channels, and promoted brand image and sales through IP cooperation, scenarios and sports marketing.
In the second half of 2018, the company will lead the industry to upgrade. It is expected that, after the existing strategies are pressed ahead, the instant noodle industry will seek growth while maintaining stability and the beverage industry will still face the challenge of structural adjustment.
--- Leading cultural innovation
The semiannual report also shows that in addition to the drinking water brands "Master Kong" and "Master Kong Youyue", the company also launched high-end natural mineral water brand "Hanyangquan" in the first half of the year, highlighting its high quality and cultural attributes to attract high-end consumers.
This brand sets accurate market positioning. It targets the urban middle and high-end consumers with oriental self-restraint concept, occupies the middle and high-end price zones with "natural mineral water" marketing point, and impresses customers with natural water sources, good taste, high quality and oriental culture, helping the product win widespread attention and establish significant partnership with high-end conferences, cultural industries, etc.
In particular, the brand has cooperated with the Palace Museum Art Exhibition. On May 18 this year, the high-tech interactive art exhibition Along the River During the Qingming Festival, 3.0 was held in the Palace Museum, and "Hanyangquan" became the only official designated drinking water of this event. This marked the second cooperation between this brand and the national cultural and art exhibition after the 14th Shenzhen Cultural Expo, which not only reflected the brand's cultural pursuit, but also the recognition of the national art exhibition on the Chinese cultural characteristics and product quality of the brand.
Experts in the industry said that "Hanyangquan" brand not only adheres to the excellent cultural concepts of the East, but also complements the aims of major cultural and artistic activities. It is also committed to telling Chinese stories and creating a modern cultural trend that belongs to the oriental culture.
Another example of cultural innovation is one of its beverage brand--pear juice with rock sugar. This product targets such group of consumers -- young family with children aged between 5 and 12, and takes children as a breakthrough point for communication and advertisement. Through the innovation of the packaging and message and a series of brand communication methods that focus on interaction with children, the company has successfully turned this brand into an interesting "playmate" for children. In the process of playing, Chinese traditional culture is spread through positive messages and delicious food.
--- Promoting Chinese food culture
In recent years, facing a series of challenges such as high prices of some raw materials, ever-changing consumer demands and fragmented channels, the company has continued to invest in brand building and stepped up efforts to promote Chinese food culture.
In terms of noodle culture, it has concentrated the diversified flavors of Chinese food into the tiny seasoning sachet through modern innovative techniques. Up to now, it has developed nearly 260 kinds of flavors, bringing consumers delicious noodles with various tastes. A small bowl of instant noodles will thus enable Chinese consumers to enjoy hometown food on a strange land.
In tea culture, the company inherited China's long-standing tea culture and created a rich tea beverage kingdom with advanced techniques and ingenuity. Absorbing the essence of China's health-preserving culture, it has introduced many beverage products such as pear juice with rock sugar and plum juice.
In addition, in recent years, the company has delivered a variety of products to consumers in different regions by opening noodle restaurants for Pyeongchang 2018 Winter Olympics and Rio de Janeiro 2016 Olympic Games in the host cities, as well as conducting cooperation with NBA and Disney in other fields. Facing the world, the instant food giant has been endowed with the mission of the times-to inherit and innovate the Chinese food culture to help it be penetrated and integrated into the popular culture, so as to maintain its vigorous vitality.
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